Demutualization.biz

demutualization

August 6, 2008 Court Decision

Without my personal challenge to the IRS on this issue and the collaboration of the Raby Law Office, there would be no refund opportunities for any mutual policyholders. Seven years of largely uncompensated full time work has been necessary to accomplish this decision. Immediate action must be taken to join us in implementing the decision to fruition as an actual refund. Representation by anyone else would be self defeating of our attempts to hold the IRS fully accountable and preserve your civil and refund rights in this matter. Taxpayer policyholders should register with us by filling out this form also found at the bottom of the home page of www.demutualization.biz. No refunds will be made without the filing of a Amended 1040X Individual or 1041 Amended Trust Return Etc. Your participation with us is essential to the achievement of refunds for all.

C D ULRICH, CPA  
 
The full text of the court's decision regarding Insurance Demutualization can be read here: Insurance Demutualization Court Decision
What does this mean for you?

If you paid federal or state income tax on cash received or stock sold in any year 2004, 2005, 2006 or 2007 that was received in a year from 1986 - 2007, from any listed Life Insurance Company. You should file an IMMEDIATE Amended Tax Return. 1040X, or Amended 1041 and State Counterparts.

As of 3/15/2006 there are at least 34 Mutual Life Insurance Companies who have converted from mutual to stock ownership in a process referred to as demutualization. See link on this page, for your Life Insurance Co.

The only way taxpayers can receive a refund of overpaid capital gain Income Taxes paid on demutualization distributions received to eliminate their ownership in the Mutual Life Co., is to file a timely and proper amended income tax return under the provisions of Internal Revenue Codes 7422 and 6511. All you need to file these returns is at this site. I will prepare and file for you from a copy of your original return or you can file your own. If I prepare and file the return, my 1/3rd fee will not be payable until after you receive your refund.

NO AMENDED RETURN MEANS NO REFUND
If tax was paid on 2004 return, you must file by 4/15/08 or 8/15/08 if you had a 4 mo. Ext. to file in 2005. *** I began to research the IRS "Zero Basis" taxation of demutualization distributions in May of 2001. My now 49 years of experience in income tax and auditing told me it was wrong. I have worked full time on obtaining refunds for policyholders since then. Over the last 7 years, with the assistance of The Insurance Forum, The Insurance Tax Review, Larry Mueller, David Schiff and various publications about the issue including Tax Notes, The Wall St Journal, Associated Press, Accounting Today, Kiplingers and the National Underwriter; many other insurance and tax professionals now share my opinion.

The Raby Law Office in Tempe, Arizona filed suit in the UNITED STATES COURT OF FEDERAL CLAIMS which is presently awaiting a decision on the plaintiff's motion for partial summary judgment and the defendant's cross motion for summary judgment.  (Eugene A. Fisher, Trustee v. U. S. ; Case No.04-1726 T) it seeks refund of the tax paid on demutualization distributions for plaintiff and as representative of all similarly situated taxpayers. *** This case will likely not be decided until after the statute of limitations expires for the year 2004. 
*** Protect your refund rights by filing a 1040X or amended 1041 tax return by 4/15/08 or 8/15/08 if you had a 4 mo. Extension for filing your 2004 return. No voluntary refunds are made.

You must file an amended return to obtain a refund from any class action or to permit you to join any favorable decision in the Fisher Case. Don't follow bad advice on taxes a 2nd time. Rev. Rul. 71-233 does not address the facts of a demutualization and should not have been cited as the authority for taxing distributions and collecting taxes from policyholders of at least 34 Mutual Life Insurers.